Some work and some play: microscopic and macroscopic approaches to labor and leisure.

Niyogi RK, Shizgal P, Dayan P - PLoS Comput. Biol. (2014)

Bottom Line:
However, averaging over the more microscopic processes that govern choices is known to pose tricky theoretical problems, and also eschews any possibility of direct contact with the neural computations involved.We develop a microscopic framework, formalized as a semi-Markov decision process with possibly stochastic choices, in which subjects approximately maximise their expected returns by making momentary commitments to one or other activity.We show macroscopic utilities that arise from microscopic ones, and demonstrate how facets such as imperfect substitutability can arise in a more straightforward microscopic manner.

ABSTRACTGiven the option, humans and other animals elect to distribute their time between work and leisure, rather than choosing all of one and none of the other. Traditional accounts of partial allocation have characterised behavior on a macroscopic timescale, reporting and studying the mean times spent in work or leisure. However, averaging over the more microscopic processes that govern choices is known to pose tricky theoretical problems, and also eschews any possibility of direct contact with the neural computations involved. We develop a microscopic framework, formalized as a semi-Markov decision process with possibly stochastic choices, in which subjects approximately maximise their expected returns by making momentary commitments to one or other activity. We show macroscopic utilities that arise from microscopic ones, and demonstrate how facets such as imperfect substitutability can arise in a more straightforward microscopic manner.

pcbi-1003894-g002: Time allocation from labor supply theory.TA as a function of the relative returns from work and leisure predicted by labor supply theory model in Eq. (1). Black and blue curves show the cases of perfect () and imperfect substitutability (), respectively.

Mentions:
However, if work and leisure are imperfect substitutes ( in Eq. (1)), then leisure is preferred more if the subject has worked more, and vice versa even for deterministic subjects. The slope of the IC decreases as additional amounts of leisure are consumed. The optimal combination includes both rewards (work) and leisure, making TA a smooth function of the relative returns from work and leisure (blue curves in Fig.2, Eq. (A-2) in Text S1), as is observed empirically.

pcbi-1003894-g002: Time allocation from labor supply theory.TA as a function of the relative returns from work and leisure predicted by labor supply theory model in Eq. (1). Black and blue curves show the cases of perfect () and imperfect substitutability (), respectively.

Mentions:
However, if work and leisure are imperfect substitutes ( in Eq. (1)), then leisure is preferred more if the subject has worked more, and vice versa even for deterministic subjects. The slope of the IC decreases as additional amounts of leisure are consumed. The optimal combination includes both rewards (work) and leisure, making TA a smooth function of the relative returns from work and leisure (blue curves in Fig.2, Eq. (A-2) in Text S1), as is observed empirically.

Bottom Line:
However, averaging over the more microscopic processes that govern choices is known to pose tricky theoretical problems, and also eschews any possibility of direct contact with the neural computations involved.We develop a microscopic framework, formalized as a semi-Markov decision process with possibly stochastic choices, in which subjects approximately maximise their expected returns by making momentary commitments to one or other activity.We show macroscopic utilities that arise from microscopic ones, and demonstrate how facets such as imperfect substitutability can arise in a more straightforward microscopic manner.

ABSTRACTGiven the option, humans and other animals elect to distribute their time between work and leisure, rather than choosing all of one and none of the other. Traditional accounts of partial allocation have characterised behavior on a macroscopic timescale, reporting and studying the mean times spent in work or leisure. However, averaging over the more microscopic processes that govern choices is known to pose tricky theoretical problems, and also eschews any possibility of direct contact with the neural computations involved. We develop a microscopic framework, formalized as a semi-Markov decision process with possibly stochastic choices, in which subjects approximately maximise their expected returns by making momentary commitments to one or other activity. We show macroscopic utilities that arise from microscopic ones, and demonstrate how facets such as imperfect substitutability can arise in a more straightforward microscopic manner.